Answers 142-162
Answers 142-162
Answers 142-162
BBA 4315
First section:
1. Main objects:- To verify the fair view and correctness of the accounts, balance
sheet and profit and loss account as per the companies act and other related laws.
2. Secondary Objects:- As given below:-
a) Detection and Prevention of Errors:- as follows:-
3. Fraudulent Manipulation of Accounts:- This class of fraud is found very less but
if it happens, this is because of Director, Managers and top responsible persons
only. These frauds can be classified as follows:-
Showing more profit so that they can get more commission etc.
Showing less profit so that they can purchase shares in the market at lower price.
Showing less profit to avoid income tax.
Such errors are not disclosed by a trial balance and they are:
1. Errors of Principle:
ADVERTISEMENTS:
2. Errors of Omission:
If a transaction is completely omitted, there will be no effect on the Trial Balance. When
a transaction goes completely unrecorded in both aspects or a transaction after being
recorded in the books of primary entry is not at all posted in the ledger, the error is an
error of omission. For instance, if a credit purchase is omitted to be recorded in the
Purchase Day Book, then it will be omitted to be posted both in the Purchase Account
and the Supplier’s Account. This error will not, however, result in the disagreement of
Trial Balance.
5. Compensating Errors:
If one account in the ledger is debited with Rs 500 less and another account in the
ledger is credited Rs 500 less, these errors cancel themselves. That is, one error is
neutralized by similar error on the opposite side.
The auditing is a systematic examination of the books, accounts, vouchers of a business- discuss
A precise definition of the term ‘auditing’ is difficult to give. Some of the definitions given
by different authors are as follows:
According to the International Federation of Accountants (IFAC); An audit is the
independent examination of financial information of an entity, whether profit oriented or
not and irrespective of its size, or legal form, when such an examination is conducted with a
view to expressing an opinion thereon.
Spicer and Pegler, have defined audit as; “such an examination of the books, accounts and
vouchers of a business, as will enable the auditor to satisfy himself that the Balance Sheet is
properly drawn up, so as to give a true and fair view of the state of the affairs of the
business, and whether the Profit and Loss Account gives a true and fair view of the profit or
loss for the financial period, according to the best of his information and the explanations
given to him and as shown by the books; and if not, in what respect he is not satisfied”.
According to the American Accounting Association (AAA); “Auditing is a systematic process
of objectively obtaining and evaluating evidence regarding assertions about economic
actions and events to ascertain the degree of correspondence between those assertions and
established criteria and communicating the results to interested users”.
According to Montgomery; “Auditing is a systematic examination of the books and records
of a business or the organization in order to ascertain or verify and to report upon the facts
regarding the financial operation and the result thereof”.
It is clear from the above definitions that;
auditing is the systematic and scientific examination of the books of accounts and
records of a business,
enables the auditor to judge that the Balance Sheet and the Profit and Loss Account are
properly drawn up so it exhibits a true and fair view of the financial state of affairs of the
business and profit or loss for the financial period.
The auditor will have to go through various books and accounts and related evidence to
satisfy himself about the accuracy and authenticity to report the financial health of the
business.
Companies are expected to pass their audits, as the results are very important to the
company’s reputation and success.
Audits are very valuable to external company affiliates, such as shareholders and investors,
because they provide an extra reassurance of their choice in investments when issues arise.
How does accountancy differ from auditing?
Objectives of Auditing:
The basic objective with which auditing is done are:
The auditor is given a free hand to the books, accounts, statements enabling him to
thoroughly check them and if satisfied to certify that books have been properly drawn up
and represent a true view of the financial position of the business. He gives his special
attention to the direction of errors which may be innocently or intentionally committed.
BASIS FOR
BOOKKEEPING ACCOUNTING
COMPARISON
BASIS FOR
AUDITING INVESTIGATION
COMPARISON
Obligatory Yes No
Second section:
Fraud does not necessarily involve misappropriation of cash or goods- discuss giving illustration
Third section
Fourth section
Explain the term internal control, internal check, and internal audit
Distinguish between internal check and internal audit
Suggest a good and sound system of internal control for payments by cheques
What is a voucher and what points must be taken into consideration while examining a voucher
Narrate internal check system as regards purchase
Discuss the duties of an auditor as regards to credit purchase and credit sales
What is the relation between routine checking and vouching?
Mention six names of documents which are used as voucher
Fifth Section
MISC
Describe the rules and regulations governing the Accounting Profession of Bangladesh
What are the financial and accounting responsibilities of directors?
Short notes:
I. Interim audit
II. Leasehold property
V. Auditor`s guidelines
First section
Second section
What is attitudes?
What is the relationship between job satisfaction with absenteeism, turnover and productivity?
Identify and describe the traits in the Big Five personality model
What is values?
What is perceptions?
Third section
Explain the three forces that play particularly important role in sustaining culture
Fourth section
I. Trait theory
IV. Why does Fielder use LPC (least preferred co-workers) questionnaire
Fifth section
What is leadership?
Sixth section
Identify and discuss the reasons that make marketing so important in the present business context
Short notes
Brand extension
New product
Core marketing concepts
Marketing plan
Ingredient branding
Auction pricing
Marketing audit
Competitive advantage
Holistic marketing
Niche marketing
Co-branding
Cause-related marketing
Corporate social responsibility